The Finnish government is examining a number of proposals to cut the VAT on standard food products.
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Finland is also considering the introduction of a lower VAT category to stimulating purchases of low-fat, healthier foods. The first reduction in VAT on food will take place next year.
Food and Agriculture Minister Sirkka-Liisa Antilla has established a committee that will examine and recommend a process to lower the VAT on food in stages from the present 17% to 8% by 2009.
“We hope that the lower VAT rates on standard foods will reduce food prices across the board,” said Antilla. “Moreover, we want to create a new VAT category for low fat healthy foods, including vegetables. This has the advantage of providing incentives to consumers to choose healthy food alternatives.”
